Luxury is experiencing an identity crisis. Once, the holy trinity of exclusivity, heritage, and indulgence defined its power. Today, those pillars are buckling under the weight of geopolitical volatility and the unpredictable pulse of global wealth. Nowhere is this shake-up more vivid than in China, where high-net-worth individuals are rewriting the rules, trading Birkins and APs for soul-searching experiences. But the shift isn’t limited to China. Across the globe, the old luxury trends are becoming obsolete. What’s coming? A total recalibration of what it means to matter in the world of affluence.
China’s new luxury code: Experiences over icons
The latest Hurun Luxury Consumer Survey reveals that China’s elite are increasingly prioritizing experiences over material possessions. This shift reflects broader global trends where luxury now is less about owning and more about being. Hermès? Audemars Piguet? Rolex? Nice to have, but not the endgame. For instance, 63% of surveyed individuals expressed interest in wellness retreats and bespoke travel experiences, signaling a move away from traditional status symbols.
And the shift doesn’t stop there. Sustainability and ethical sourcing now rank among the top criteria for luxury purchases—a stark departure from past preferences driven purely by brand prestige and craftsmanship.
This evolution is not just a reaction to economic conditions but also reflects deeper cultural changes. As Barbara Kahn, Patty and Jay H. Baker Professor of Marketing at The Wharton School, University of Pennsylvania, noted during her session at the 2025 RLC Global Forum, luxury brands must adapt to this new ethos by redefining customer value. “Luxury today is about creating meaningful connections,” she emphasized. “It’s no longer just about the product; it’s about the story behind it and the experience it delivers.”
Exclusivity vs. accessibility
Here’s the billion-dollar question: Can luxury stay exclusive while becoming more accessible? It’s a paradox that has become the crucible for strategic reinvention in the industry. Traditional luxury thrives on scarcity—limited editions, waitlists, and price hikes—but modern consumers demand personalization and inclusivity. They still crave the exceptional, but they want it served with relevance, authenticity, and emotional payoff.
At this year’s RLC Global Forum in Riyadh, Michael Chalhoub, CEO of Chalhoub Group, laid bare this contradiction: “We compensate for challenges like pricing gaps not with discounts, but with experience, with emotion, with personalization. Luxury is a high price to pay, but our customers will pay it if they feel a connection.”
Geoffroy van Raemdonck, former CEO of Neiman Marcus Group and luxury retail expert, took it further: “Exclusivity doesn’t mean exclusion. Clients expect brands to meet them where they are, and in a tone that mirrors their individuality.” His point? Relevance is the new luxury. Brands win not by tightening the rope, but by making access feel intentional and personal.
The takeaway? Luxury trends are changing. Exclusivity isn’t disappearing but more like changing its colors. Not fewer customers, just smarter connections.
The rise of experiential luxury
Experiential luxury is emerging as the new frontier. Whether it’s dining at Michelin-starred restaurants, attending exclusive art exhibitions, or embarking on tailor-made adventures, today’s affluent consumers aren’t buying things. They’re buying stories, immersion, and emotional ROI.
At the RLC Global Forum, Harrods’ Managing Director, Michael Ward made it crystal clear: retail must deliver theater. It’s no longer about selling products but about curating desire. That’s why, from ultra-private shopping suites that feel more like seven-star hotels to data-driven event curation, Harrods is turning transactional touchpoints into cultural moments.
Michael Chalhoub echoed the shift, pointing to the Middle East’s appetite for immersive retail-tainment. “We compensate with experience, with emotion,” he said. And in markets like Saudi Arabia and the UAE, where homegrown spending is surging, luxury is becoming hyper-local, hyper-personal, and highly experiential. You see, materialism is not dead. It just got a soul.
Sustainability: The new status symbol
Today’s affluent consumers are buying values. The Hurun survey revealed that 78% of Chinese HNWIs consider sustainability a key factor in luxury purchases. From Stella McCartney’s vegan innovations to Gucci’s carbon-neutral push, eco-consciousness is moving from the margins to the mainstream.
As Ms. Kahn put it: “Brands that can tell authentic stories about their commitment to sustainability will win loyalty.” This isn’t greenwashing. The onus is now on brands to embed purpose into every layer of the business model—from sourcing and labor to resale and repair.
Affluence, redefined
Here’s the bottom line: The new power of luxury lies in how it makes people feel; what it stands for. If it doesn’t move people—emotionally, culturally, ethically—it is irrelevant. It doesn’t matter. The age of luxury-as-status is fading. What’s rising is luxury with purpose, with values, with vision.
The future of luxury trends will be defined by brands that can deliver meaning at scale. Brands that understand time, trust, and identity. Brands that can relate to a new generation of global wealth. The signals are already there. The direction is set. There is no going back.
